Marketplace for temporary workers Nomad Health raises $105 million

Nomad healthan online job portal for temporary health workers, raised $105 million in funding led by Adams Street Partners and Icon Ventures.

Other participants in the round include HealthQuest Capital, Polaris Partners, .406 Ventures, AlleyCorp and RRE Ventures, as well as new debt providers JP Morgan and Trinity Capital.

The staffing startup said the new capital brings total revenue to more than $200 million. The funding comes less than a year after Nomad announced it had come in $63 million in new equity and debt financing.

WHAT IT DOES

Nomad provides an employee marketplace for temporary workers, where users can search for jobs across the country, apply for jobs, manage an online resume, and filter jobs by salary and specialty.

The company plans to use the capital to expand beyond travel nurses and professionals such as lab technicians, physical therapists and ultrasound technicians. It also announced the appointment of Maquel Shaw as Chief Marketing Officer, who will join the startup trading company Overstock.com.

“The COVID-19 pandemic has exposed and accelerated the health care crisis that has been a powerful health undercurrent for decades. This 21st century scale problem urgently needs a 21st century solution. We’ve worked hard to think differently and apply technology, cutting-edge data science and best business practices from all industries so that Nomad can serve all types of clinicians of all types of healthcare across the country more efficiently, effectively and scalable,” said CEO and Co-Founder dr. Alexi Gharib Nazem in a statement.

MARKET SNAPSHOT

Healthcare workforce shortages have become a major concern for healthcare providers, especially amid the ongoing COVID-19 pandemic. A recent report from the American Hospital Association found that labor accounts for more than half of total hospital costs. Meanwhile, the report noted a 120% increase in contract or travel nurse vacancies from January 2019 to January 2022.

There are now a number of startups touting technology-based healthcare job markets. In April Clipboard Health announced that it: has raised $80 million in two funding rounds, a $30 million Series C that closed in February and a $50 million Series B last year.

IntelyCare, which focuses on nurses and nursing assistants, recently raised $115 million in Series C financing, raising the company’s valuation to $1.1 billion. Meanwhile, connectRN announced a $76 million raise in December, while Prolucent Health raised $11.5 million in Series A funding.